White House: Trump Administration Considering Replacing Fed Chairman Powell
The White House's chief economic advisor, Kudlow, said on Friday, April 18 that US President Trump and his team are considering the possibility of replacing Federal Reserve Chairman Powell.
According to AFP reports, Kudlow stated at the White House to reporters on Friday: "The president and his team will continue to study the issue of replacing Powell."
Fed Chairman Powell has recently become a target of strong criticism from Trump for refusing to further cut interest rates. Trump publicly expressed at the White House on Thursday: "I am not satisfied with him (Powell). I have let him know. If I want him to leave, he will go very quickly, believe me."
Despite Trump's tough rhetoric, according to legal provisions, the president does not have direct authority to dismiss the Federal Reserve (Fed) chairman. To formally remove Powell, a lengthy legal process must be initiated and serious dereliction of duty must be proven.
Powell was nominated by Trump to serve as the Fed chairman in his first term in 2018, but Trump has recently frequently criticized him for politicizing the Fed and failing to align with his economic policies.
This week, Powell warned that Trump's significant increase in tariffs on imported goods "is almost certain to cause at least short-term inflation increases." Currently, the minimum tariff on most imported goods has been raised to 10%.
According to an earlier report by The Wall Street Journal, Trump has privately discussed replacing Powell over the past few months and has consulted former Fed Governor Kevin Warsh about the possibility of taking over.
It remains unclear whether Trump will officially push for the dismissal procedure, but his public pressure has placed Powell's leadership of the Fed under unprecedented challenges.
Source: https://www.toutiao.com/article/1829786045690880/
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